Orientation and discussion on Chapter 1

The Dynamic New Workplace

Planning Ahead Chapter 1 Study Questions

What are the challenges of working in the new economy? What are organizations like in the new workplace? Who are managers and what do they do? What is the management process? How do you learn the essential managerial skills and competencies?
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Overview of the New Workplace

A highly competitive global economy has created

unparalleled opportunities and unprecedented uncertainties. Smart people and smart organizations create their own futures. Companies with a future are committed to people. Companies with a future have high performance expectations and provide supportive work environments. High performing companies gain extraordinary results from people.
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Study Question 1: What are the challenges of working in the new economy?
Intellectual capital People are the the ultimate foundations of organizational performance. Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create value. A knowledge worker adds to the intellectual capital of an organization.
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Study Question 1: What are the challenges of working in the new economy?
Globalization
National boundaries of world business have

largely disappeared. Globalization is the worldwide interdependence of resource flows, product markets, and business competition that characterize the new economy.
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Study Question 1: What are the challenges of working in the new economy?
Technology Continuing transformation of the modern workplace through:
The Internet World Wide Web Computers Information technology

Increasing demand for knowledge workers with the skills to fully utilize technology.
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Study Question 1: What are the challenges of working in the new economy?

Diversity Workforce diversity reflects differences with respect to gender, age, race, ethnicity, religion and able-bodiedness etc. A diverse and multicultural workforce both challenges and offers opportunities to employers.
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Study Question 1: What are the challenges of working in the new economy?
How diversity bias can occur in the

workplace:
Prejudice
Discrimination

Glass ceiling effect

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Study Question 1: What are the challenges of working in the new economy?
Ethics Code of moral principles that set standards of conduct. Ethical expectations for modern businesses: Integrity and ethical leadership Natural environment Consumer protection Human rights
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Study Question 1: What are the challenges of working in the new economy?
Careers Core workers, contract workers, and part-time workers. People must be prepared to be any one of these types of workers. People must make sure that their skills are portable and of current value in employment markets.
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Study Question 2: What are organizations like in the new workplace?

Critical skills for success in the new

workplace

Mastery Contacts Entrepreneurship Love of technology Marketing Passion for renewal

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Study Question 2: What are organizations like in the new workplace?

Organization
A collection of people working together to achieve a

common purpose.
Organizations provide useful goods and/or services

that return value to society and satisfy customer needs.

System
Components or parts working together

interdependently to achieve a common purpose.

Systems have various kinds
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Study Question 2: What are organizations like in the new workplace?

Organizations are open systems Composed of interrelated parts that function together to achieve a common purpose. Interact with their environments. Transform resource inputs into product outputs (goods and services). Environmental feedback tells organization how well it is meeting the needs of customers and society.
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Figure 1.1 Organizations as open systems.

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Study Question 2: What are organizations like in the new workplace?

Organizational performance Value creation is a very important notion for organizations. Value is created when an organizations operations adds value to the original cost of resource inputs. When value creation occurs:
Businesses earn a profit. Nonprofit organizations add wealth to society.
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Study Question 2: What are organizations like in the new workplace?

Organizational performance Productivity
An overall measure of the quantity and quality of work performance with resource utilization taken into account.

Effectiveness
An output measure of task or goal accomplishment. Doing the right things

Efficiency
An input measure of the resource costs associated with goal accomplishment. Doing the things right
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Figure 1.2 Productivity and the

dimensions of organizational performance.

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Too Much Emphasis on Effectiveness

Efficiency Effectiveness
The job gets done, But Available resources are wasted

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Too Much Emphasis on Efficiency

Effectiveness
The job does not get done, because

Efficiency
Available Resources are underutilized

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Balanced Emphasis on Both

Effectiveness
The job gets done, And

Efficiency
Available resources are not wasted

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Study Question 2: What are organizations like in the new workplace?

Workplace changes that provide a context for

studying management

Belief in human capital Demise of command-and-control Emphasis on teamwork Preeminence of technology Embrace of networking New workforce expectations Concern for work-life balance Focus on speed
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Study Question 3: Who are managers and what do they do?

Importance of human resources and

managers
Toxic workplaces treat employees as costs. High performing organizations treat people as

valuable strategic assets.

Managers must ensure that people are treated as

strategic assets.
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Study Question 3: Who are managers and what do they do?

A manager is a person in an organization

who directly supports and helps activate the work efforts and performance accomplishments of others.
The people who managers help are the ones

whose tasks represent the real work of the organization.

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Study Question 3: Who are managers and what do they do?

Levels of management Top managers responsible for performance of an organization as a whole or for one of its larger parts.
Middle managers in charge of relatively large departments or divisions.

Team leaders or supervisors in charge of a small work group of non-managerial workers.

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Study Question 3: Who are managers and what do they do?

Responsibilities of team leaders: Plan meetings and work schedules. Clarify goals and tasks, and gather ideas for improvement. Appraise performance and counsel team members. Recommend pay raises and new assignments. Recruit, develop, and train team members.
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Study Question 3: Who are managers and what do they do?

Responsibilities of team leaders (cont.): Encourage high performance and teamwork. Inform team members about organizational goals and expectations. Inform higher levels of work unit needs and accomplishments. Coordinate with others teams and support the rest of the organization.
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Study Question 3: Who are managers and what do they do?

Types of managers Line managers are responsible for work activities that directly affect organizations outputs. Staff managers use technical expertise to advise and support the efforts of line workers. Functional managers are responsible for a single area of activity. General managers are responsible for more complex units that include many functional areas. Administrators work in public and nonprofit organizations.
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Study Question 3: Who are managers and what do they do?

Managerial performance and accountability
Accountability is the requirement of one person to answer to a higher authority for relevant performance results. Effective managers fulfill performance accountability by helping others to achieve high performance outcomes and experience satisfaction in their work.
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Study Question 3: Who are managers and what do they do?

Quality of work life (QWL) An indicator of the overall quality of human experiences in the workplace. QWL indicators:
Fair pay Safe working conditions Opportunities to learn and use new skills Room to grow and progress in a career Protection of individual rights Pride in work itself and in the organization
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Study Question 3: Who are managers and what do they do?

High performing managers
Build working relationships with others. Help others develop their skills and

performance competencies.
Foster teamwork.

Create a work environment that is performance-

driven and provides satisfaction for workers.

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Study Question 3: Who are managers and what do they do?

The organization as an upside-down

pyramid
Each individual is a value-added worker. A managers job is to support workers efforts. The best managers are known for helping and supporting.
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Figure 1.3 The organization viewed as an

upside-down pyramid.

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Study Question 4: What is the management process?

Management is the process of planning,

organizing, leading, and controlling the use of resources to accomplish performance goals.
All managers are responsible for the four

functions.
The functions are carried on continually.
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Study Question 4: What is the management process?

Functions of management
Planning
The process of setting objectives and determining what actions should be taken to accomplish them.

Organizing
The process of assigning tasks, allocating resources, and arranging the coordinated activities of individuals and groups to implement plans.
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Study Question 4: What is the management process?

Functions of management Leading
The process of arousing peoples enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives.

Controlling
The process of measuring work performance, comparing results to objectives, and taking corrective action as needed.
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Figure 1.4 Four functions of management.

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Study Question 4: What is the management process?

Managerial activities and roles Interpersonal roles
Involve interactions with persons inside and outside the work unit.

Informational roles
Involve giving, receiving, and analyzing of information.

Decisional roles
Involve using information to make decisions in order to solve problems or address opportunities.
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Figure 1.5 Mintzbergs 10 managerial

roles.

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Study Question 4: What is the management process?

Characteristics of managerial work Managers work long hours. Managers work at an intense pace. Managers work at fragmented and varied tasks. Managers work with many communication media. Managers work largely through interpersonal relationships.
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Study Question 4: What is the management process?

Managerial agendas and networks Agenda setting
Development of action priorities for ones job. Include goals and plans that span long and short time frames.

Networking
Process of building and maintaining positive relationships with people whose help may be needed to implement ones work agendas.
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Study Question 5: How do you learn the essential managerial skills and competencies?
Essential managerial skills
Skill the ability to translate knowledge into action that results in desired performance. Technical skill the ability to apply a special proficiency or expertise to perform particular tasks. Human skill the ability to work well in cooperation with others. Conceptual skill the ability to think critically and analytically to solve complex problems.
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Figure 1.6 Katzs essential managerial

skills.

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Study Question 5: How do you learn the essential managerial skills and competencies?
Managerial competency
A skill-based capability that contributes to high performance in a management job.

Managerial competencies are implicit in:

Planning, organizing, leading, and controlling. Informational, interpersonal, and decisional roles. Agenda setting and networking.
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Study Question 5: How do you learn the essential managerial skills and competencies?
Competencies for managerial success:
Communication Teamwork

Self-management
Leadership Critical thinking Professionalism
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Why Study Management?

The Value of Studying Management
The universality of management
Good management is needed in all organizations.

The reality of work

Employees either manage or are managed.

Rewards and challenges of being a manager

Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work. Successful managers receive significant monetary rewards for their efforts.
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Figure 1.7 Understanding Management

from Theory to Practice.

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